DA Davidson sets Blaze stock Buy rating, $10 price target

Published 11/02/2025, 22:58
DA Davidson sets Blaze stock Buy rating, $10 price target

On Tuesday, DA Davidson began coverage on Blaze Inc. (NASDAQ:BZAI), issuing a Buy rating and establishing a price target of $10.00, representing significant upside from the current price of $3.21. According to InvestingPro data, the stock has experienced substantial volatility, trading between $3.25 and $29.61 over the past 52 weeks. Blaze Inc., a company specializing in AI-enabled edge computing with a market capitalization of $349 million, is now recognized for its potential to become a significant player in the industry by providing comprehensive solutions that could revolutionize on-device intelligence.

The new price target is based on a projected 8 times the company’s revenue for the fiscal year 2026. While current revenue stands at just $1.97 million for the last twelve months, with a challenging gross profit margin of -63%, DA Davidson’s coverage initiation reflects their confidence in Blaze’s ability to capitalize on the growing AI inference market. The firm’s analysts highlight Blaze’s robust technology platform, its ability to expand across diverse use cases, and the large market available for its products and services. InvestingPro subscribers can access 11 additional key insights about Blaze’s financial health and market performance.

Blaze’s positioning in the market is seen as particularly favorable due to the increasing demand for edge computing solutions that process data where it is generated rather than in a centralized computing environment. This capability is vital for applications requiring immediate data processing and real-time analytics, such as those found in automotive, healthcare, and manufacturing sectors. Notably, the company maintains a healthy current ratio of 2.14, indicating strong short-term liquidity to support its growth initiatives.

DA Davidson’s endorsement of Blaze Inc. comes at a time when the tech industry is paying close attention to advancements in artificial intelligence and machine learning. The analyst’s statement emphasizes the company’s readiness to meet the demands of the next generation of AI applications and services.

Blaze Inc. is expected to benefit from its focus on AI-enabled edge computing, with DA Davidson’s coverage likely to boost investor confidence in the company’s strategic direction and market potential. The firm’s analysis suggests that Blaze is well-positioned to navigate the emerging AI landscape and could offer a compelling investment opportunity within this innovative sector.

In other recent news, Blaize Holdings, Inc., an AI-enabled edge-optimized solutions developer, has projected substantial growth in revenue for fiscal years 2025 and 2026. The company anticipates revenue between $19 million to $50 million for 2025, increasing significantly to $105 million to $140 million for 2026. These projections are aligned with the increasing demand for edge AI technology in key sectors such as defense, smart city, and automotive verticals.

In addition, Blaize has announced the appointment of Lane Bess as chairman of its board of directors. Bess, a key investor in Blaize for over three years, brings over three decades of leadership experience in technology companies to the role.

These are among the recent developments at Blaize, which is also collaborating with industry partners such as Denso Corporation and Mercedes-Benz (OTC:MBGAF) Group AG to bolster its automotive solutions. Furthermore, the company’s revenue model comprises hardware sales, recurring revenue sharing from edge device charges, and full system/solution charges. This news emphasizes the company’s strategic positioning to meet the high-performance compute demands of its customers.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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